Current Status of Public the Distribution System

Public Distribution System

The Food Corporation of India (FCI) is responsible for distributing food obtained from farmers through government-regulated ration shops known as Fair Price Shops or the Public Distribution System (PDS). Rationing was first introduced in India in the 1940s following the Bengal famine. It was then reintroduced in the 1960s due to a severe food shortage before the Green Revolution. In response to the high poverty rates reported by the NSSO in the mid-1970s, three significant food intervention programs were implemented....

Introduction of Rationing

Rationing was first introduced in India during the 1940s, amidst the devastating Bengal famine. It was later reinstated in the 1960s due to a severe food shortage that preceded the Green Revolution. In response to the high levels of poverty reported by the NSSO in the mid-1970s, the government introduced three major food intervention programs: the Public Distribution System (PDS) for food grains (which had existed earlier but was strengthened), the Integrated Child Development Services (ICDS) (introduced experimentally in 1975), and Food-for-Work (FFW) (introduced in 1977-78)....

Current Status of Public the Distribution System

The Government of India implemented the Public Distribution System (PDS) to ensure food security in the country. In 1992, the system was revamped, and later, in 1997, the Targeted Public Distribution System (TPDS) was introduced to specifically aid the poor in all areas. Additionally, the Antyodaya Anna Yojana (AAY) and Annapurna Scheme (APS) were launched in 2000. India’s public distribution system is now going through both successes and setbacks. On the one hand, the system has been effective in providing food grains that have been given subsidies to a sizable section of the population, thereby reducing hunger and malnutrition. Yet, the system has issues like fraud, inadequacies in coverage, and leakage....

Stabilization of Prices

The PDS has proven to be the most effective government policy instrument in stabilizing prices and providing food to consumers at affordable prices. However, the system has faced criticism on various fronts. The high buffer stocks of food grains are undesirable and wasteful. Some states like Punjab, Haryana, Western Uttar Pradesh, and Andhra Pradesh primarily grow two crops, wheat and rice, leading to environmental degradation and a fall in water levels, which threaten agricultural development’s sustainability....

Malpractices by PDS dealers

PDS dealers have also engaged in malpractice such as diverting grains to the open market for better margins, selling poor quality grains at ration shops, and irregular shop openings. Recently, the PDS has also seen a decline due to three different types of cards and varying price ranges. Under TPDS, families above the poverty line receive a little discount at the ration shop as they are offered three different prices. The APL families are charged almost as high as the open market prices, reducing their incentive to buy from ration shops....

Role of Government

Cooperatives are playing a vital role in ensuring food security in India, especially in the southern and western regions of the country. These societies have established shops to provide affordable goods to impoverished individuals. For example, in Tamil Nadu, cooperatives operate around 94% of all fair-price shops. In Delhi, Mother Dairy is making significant progress in supplying milk and vegetables to consumers at government-set rates. Amul, another successful cooperative from Gujarat, has transformed the dairy industry in India through its White Revolution. These are just a few examples of the many cooperatives throughout India that are working to ensure food security for various sectors of society....

FAQs on Public Distribution System

Question 1: What is food security?...